Reverse mortgages are the 1987 creation of the Reagan Administration. They're government-insured loans that allow seniors to keepownership of their home and take money out without having to pay it back until they pass away or sell the home. Don't think it sounds too good to be true--it's not.
A reverse mortgage is basically a loan issued to the homeowner based on their home’s equity. The available money can be immediately disbursed to the senior in one lump sum, or through a credit line or monthly payout. The loan amount grows monthly by the amount of the interest. Since it's a governement loan rates tend to be very low (think 3% to 5%).
When the borrower dies or moves, the loan must be paid back. Basically, the borrower is just paying their mortgage at the end, instead of monthly. Reverse mortgages have a low rate and were designed with seniors in mind!